Inventory planning and control Question:

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One of the underlying assumptions of the EOQ model is that?

Inventory planning and control Interview Question
Inventory planning and control Interview Question

Answers:

Answer #1
1. Replenishment is non-instantaneous
2. Demand is unstable and unpredictable
3. The purchase price per unit varies with the quantity ordered
4. There is a point where stockholding costs are equal to ordering costs
5. A doubling of demand requires a doubling of the order quantity

There is a point where stockholding costs are equal to ordering costs

Answer #2
Replenishment is non-instantaneous.

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Which of these statements is correct?Which would be the most appropriate method of controlling stock in a retail shop?